6 Oversold Stocks Seeing Excessive Short Interest

by: Kapitall

Are you looking for depressed stocks that could be on the cusp of a comeback? If so, this list might offer an interesting starting point.

Below is a list of 6 stocks that are oversold according to RSI(14), with readings below 40. These stocks have also seen a significant increase in short interest over the last month - not only have they seen large increases in the number of shares shorted, they also have current short floats above 10%.

Do you think these are likely candidates for a short squeeze? Full details below.

List sorted by increase in shares shorted.

1. Unisys Corporation (NYSE:UIS): Information Technology Services Industry. Market cap of $1.33B. RSI(14) at 38.97. Shares shorted have increased 34.25% month-over-month (from 2.54M to 3.41M). Float short at 10.57% (equivalent to 4.64 days of average volume). The stock has lost 16.59% over the last year.

2. AMR Corporation (AMR): Major Airlines Industry. Market cap of $2.08B. RSI(14) at 37.48. Shares shorted have increased 18.87% month-over-month (from 39.75M to 47.25M). Float short at 11.15% (equivalent to 2.68 days of average volume). The stock is currently stuck in a downtrend, trading 5.81% below its SMA20, 9.84% below its SMA50, and 14.32% below its SMA200. AMR has lost 5.32% over the last week.

3. Greenhill & Co., Inc. (NYSE:GHL): Investment Brokerage Industry. Market cap of $1.81B. RSI(14) at 38.76. Shares shorted have increased 15.70% month-over-month (from 4.14M to 4.79M). Float short at 16.04% (equivalent to 11.82 days of average volume). GHL has a relatively low correlation to the market (beta = 0.77), which may be appealing to risk-averse investors. It's been a rough couple of days for the stock, losing 7.05% over the last week.

4. iStar Financial Inc. (SFI):
REIT. Market cap of $875.19M. RSI(14) at 38.79. Shares shorted have increased 12.36% month-over-month (from 16.26M to 18.27M). Float short at 20.35% (equivalent to 10.95 days of average volume). This is a risky stock that is significantly more volatile than the overall market (beta = 2.83). After a solid performance over the last year, SFI has pulled back during recent sessions. The stock is 4.41% below its SMA20 and 3.09% below its SMA50, but remains 46.06% above its SMA200. The stock has gained 84.02% over the last year.

5. Beazer Homes USA Inc. (NYSE:BZH): Residential Construction Industry. Market cap of $344.43M. RSI(14) at 38.95. Shares shorted have increased 12.25% month-over-month (from 13.96M to 15.67M). Float short at 20.95% (equivalent to 7.04 days of average volume). The stock has lost 6.24% over the last year.

6. MannKind Corp. (NASDAQ:MNKD): Biotechnology Industry. Market cap of $487.32M. RSI(14) at 39.97. Shares shorted have increased 14.01% month-over-month (from 18.27M to 20.83M). Float short at 26.14% (equivalent to 6.16 days of average volume). The stock has lost 45.86% over the last year.

*Shares shorted data sourced from Yahoo! Finance, all other data sourced from Finviz.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.